1. Highlights of 2017 Tax Law Changes
Richard Furlong, Jr.
Senior Stakeholder Liaison
October 26, 2017
Main Line Association for Continuing Education

2. Due Date
Returns and payments otherwise due April 15, 2018, are timely if filed or paid by Tuesday, April 17, 2018

3. Expired Provisions Tuition and fees deduction (Form 8917)
Mortgage insurance premiums
Credits (including Form 5695)
Discharge of principal residence debt
7.5% medical expense AGI floor

4. Expired Business Provisions
Certain depreciation provisions
TV, film, & theatrical production expenses
Credits
Special rate for qualified timber gains
Alternative fuel excise tax provisions

5. Qualifying Widow(er) Qualifying child no longer must be a dependent
Name must be provided if not dependent (as with head of household)
Name changed to “Qualifying Widow(er)”
Other changes

6. Oil and Gas Credits
New Form 8904, Credit for Oil and Gas Production From Marginal Wells (Sec. 45I) for tax year 2016
Form 8830, Enhanced Oil Recovery Credit

7. Education Credits
Taxpayer Identification Number of educational institution required on Form 8863 for all claimants of American Opportunity Tax Credit (AOTC), even if institution didn’t issue Form 1098-T
Form 8862 revised to encompass AOTC (and child tax credit)
Form 1098-T qualified tuition reporting

9. 1098-T

10. Partnership Penalty Relief
The IRS will grant relief from the penalties failure to file and furnish returns for the first taxable year of any partnership that began after December 31, 2015
If the partnership filed the Form 1065, 1065-B, or 8804 and Schedules K-1 or 8805 by April 18, 2017 for calendar-year taxpayers
IRS Notice

11. New Partnership Audit Rules
TEFRA audit rules replaced by Bipartisan Budget Act of 2015 (BBA) rules
Form 1065B not applicable after TY 2017
Form 7036, Election Under Section 1101(g)(4) of the Bipartisan Budget Act of 2015
REG

12. REVOCATION OR DENIAL OF PASSPORT
Legislation review
Implementation date
Roles of IRS and Department of State
Avoiding passport denial/revocation
IRC 7345

13. Expiring ITINs
ITINs with middle digits 70, 71, 72 or 80 will expire at the end of 2017.
Notice CP-48 Notice explains the steps these taxpayers need to take to renew the ITIN if it will be included on a U.S. tax return filed in 2018.
All ITINs not used on a federal tax return at least once in the last three years will also expire at the end of 2017.

14. Expiring ITINs
Federal tax returns submitted in 2018 with an expired ITIN will be processed. However, exemptions and/or certain tax credits will be disallowed until renewed. IR

15. Changes to user fees, effective Jan. 1, 2017

16. Other New Forms
Form 8973, Certified Professional Employer Organization Customer Reporting Agreement
Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities
Form 8975, Country-by-Country Report
Form 9100, Notice of Late Election
See IRS.gov/DraftForms, IRS.gov/LatestForms

17. Other Changes
Electing to treat a federally declared disaster area loss as sustained in the preceding year (Form 4684)
Example: Casualty loss incurred in a federally declared disaster area from hurricane Harvey, Irma or Maria in 2017.
Taxpayers have until 10/15/2018 to make the election to amend their 2016 tax return to claim the casualty loss or to claim the loss on their 2017 tax return.
Rev. Proc

18. Other Changes
Qualified small employer health reimbursement arrangements

19. Research Credit
Eligible small businesses can … apply part or all of their research credit against their payroll tax liability, instead of their income tax liability.
To qualify … a business must have gross receipts of less than $5 million and could not have had gross receipts prior to 2012.
Eligible small business with qualifying research expenses can choose to apply up to $250,000 of its research credit against its payroll tax liability.
Notice

20. Resources
IRS.gov/DraftForms for early drafts of forms and instructions
IRS.gov/TaxMap for searching forms, instructions, publications, and articles on IRS.gov, all at once
IRS.gov/IRC for Internal Revenue Code, etc.

21. Contact Information
Richard Furlong, Jr.
Senior Stakeholder Liaison